ALFRED MARSHALL AND QUANTITY THEORY OF MONEY

The subject of the study is analysis of the Cambridge cash balance equation first formulated verbally by Alfred Marshall in his work «Money, Credit & Commerce» (1923) and the equation of exchange of Irving Fisher, described by him in the work «The Purchasing Power of Money, its Determination and Relation to Credit, Interest and Crises» (1911). The comparison of competing theories based on the law of monetary circulation is carried out in order to verify mainly the cash balance equation as a simple macroeconomic model, although not always explicitly formalized. Analysis of Alfred Marshall's views on the theory of money is relevant in the light of the development of the modern financial sphere, in particular, with the aim of building a macroeconomic model of «digital money».